Why is the Lake Resources share price rebounding 5% on Monday?

It’s been a solid day for the S&P/ASX 200 Index (ASX: XJO) this Monday’s earnings really get going. As it stands as we approach the closing bell, the ASX 200 share has put on a solid 0.45% at just over 7,060 points. But it’s going a whole lot better for the Lake Resources N.L. (ASX: LKE) share price.

Lake Resources shares have had a corker of a day today. The ASX 200 lithium stock is currently up a pleasing 5.07% at $1.45 a share. Earlier today, the company rose as high as $1.48 a share, which was worth a rise of over 7% at the time. It’s a pleasing rebound from last Friday, which saw the company shed more than 13%.

So what’s gone so right for Lake this Monday?

Why is the Lake Resources share price rising today?

Well, it’s hard to say. Lake hasn’t put out any news or announcements itself today. Indeed, we haven’t heard anything substantial from the company since the quarterly activities report we saw at the end of last month. That hasn’t stopped the Lake Resources share price from adding almost 30% over the past week though.

So the most likely explanation for Lake’s stellar share price run today might be what occurred with its fellow lithium stock Core Lithium Ltd (ASX: CXO) today.

Core Lithium shares have fared even better than Lake Resources during today’s session. The company has gained a pleasing 8.16%  to $1.59 a share. This follows the company releasing a well-received update to investors this morning.

As my Fool colleague Brooke covered earlier, Core revealed some promising lithium results at two of its projects, as well as some promising news regarding the presence of gold at one of them.

So it seems that this goodwill might be spilling into the Lake Resources share price today.

At the current Lake Resources share price, this ASX lithium stock has a market capitalisation of $2.02 billion.

The post Why is the Lake Resources share price rebounding 5% on Monday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ASX 200 shares having a super start to the week
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why BlueScope, Carsales, Core Lithium, and Nearmap shares are racing higher
• Why are ASX lithium shares having such a cracking start to the week?
• Why is the Liontown share price leaping 5% on Monday?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/xJgCDTO